Harmonic Inc (HLIT) Stock Analysis
Verdict: HOLD
The pivot to a pure-play Cable Access business via the $145M Video unit sale will re-rate the stock if margin expansion offsets revenue loss.
Investment score: 64/100
Analysis as of
Is Harmonic Inc stock worth reviewing? The TradeMates thesis
Harmonic is in a high-stakes transition period. While the divestiture of its Video segment provides $145M in cash and streamlines operations, the 27.5% revenue drop highlights the pain of the transition. Massive earnings surprises suggest the market is underestimating underlying efficiency, but insider selling and valuation compared to FMP DCF ($1.97) suggest the current price has priced in much of the recovery already.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 78/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 72/100 (weight 10%)
- Risk-Adjusted Return: 58/100 (weight 15%)
Harmonic Inc opportunities and risks
What speaks for HLIT
- Pure-play status post-Video sale",whyItMatters:
What speaks against HLIT
- Video Unit Sale Failure
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| HLIT | n/a | 3.1x | 30.8x | 50.5% | -8.4% | 2.9% |
| VISN | 4748.0x | 0.7x | 0.5x | 38.9% | 0.0% | 7.9% |
| DGII | 59.5x | 5.4x | 30.4x | 63.4% | 9.1% | 4.9% |
| CALX | 74.7x | 2.3x | 40.1x | 57.1% | 3.2% | 4.4% |
| ADTN | n/a | 1.1x | 16.7x | 38.6% | -3.2% | 4.7% |
| ADTN | n/a | 1.1x | 16.7x | 38.6% | -3.2% | 4.7% |
| Peer median | 59.5x | 1.1x | 16.7x | 38.9% | 0.0% | 4.7% |
Frequently asked questions about Harmonic Inc (HLIT)
Is HLIT stock a good investment?
The TradeMates model rates Harmonic Inc as HOLD with an investment score of 64/100. Harmonic is in a high-stakes transition period. While the divestiture of its Video segment provides $145M in cash and streamlines operations, the 27.5% revenue drop highlights the pain of the transition. Massive earnings surprises suggest the market is underestimating underlying efficiency, but insider selling and valuation compared to FMP DCF ($1.97) suggest the current price has priced in much of the recovery already. This is algorithmic model output, not personal investment advice.
Is HLIT stock a buy?
The TradeMates model verdict for HLIT is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.